Save time with our cheat sheets, fact sheets, checklists & books!

February 23, 2009

Excess accumulation

Print

Definition

Any amount by which  the RMD due for the year is short.
Example: If the RMD for the year is $10,000, and only $8,000 was distributed from the retirement account, the excess accumulation is $2,000 ( $10,000-$8,000).

Referring Cite

IRC § 4974, ; Treas. Reg. §54.4974-1

Additional Helpful Information

  • An Excess accumulation penalty applies to excess accumulations. However, the penalty may be waived by the IRS if the participant is able to establish that the failure to withdraw the RMD by the deadline was due to reasonable cause.
More

Keep Learning

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

Catch-up Contribution

Definition An additional contribution that can be made to a retirement plan by a participant who is at least age-50 by the end of the

Salary Deferral Contribution

Definition A contribution made pursuant to a participant’s election to have a portion of his/her salary/wages  contributed to his/ her employer sponsored plan  rather than

Be among the first to know when

IRA Rules
Change